GBP/USD Price Analysis: Steadies around 1.1500 with eyes on UK inflation

• GBP/USD licks its wounds after falling the most since early May.
• Clear U-turn from 21-DMA, two-month-old horizontal resistance keeps bears hopeful.
• Yearly low can restrict immediate downside ahead of 61.8% FE of August-September moves.

GBP/USD struggles to defend the corrective pullback from the weekly low, retreating to 1.1500 during Wednesday’s Asian session. In doing so, the Cable pair portrays the trader’s bearish bias ahead of the UK Consumer Price Index (CPI) release. It’s worth noting that the US inflation data triggered the quote’s biggest daily loss in 2.5 months the previous day.

Given the quote’s sustained pullback from the 21-DMA, around 1.1670 by the press time, could with the impending bear cross of the MACD, the GBP/USD sellers are likely to keep the reins.

Even if the quote crosses the 1.1670 DMA hurdle, a two-month-old horizontal resistance area near 1.1740-60 could challenge the pair buyers before giving them control.

Following that, a run-up towards the late August swing high around 1.1900 can’t be ruled out.

Alternatively, the previous day’s bottom around 1.1490 and the yearly low near 1.1400 appear the immediate supports for the GBP/USD bears to watch during the quote’s further weakness.

However, a clear downside break of the 1.1400 threshold won’t hesitate to aim for the 61.8% Fibonacci Expansion (FE) of August-September moves, near 1.1270.

GBP/USD: Daily chart

Trend: Further weakness expected